Bargara Property Factsheet

Bargara Property Factsheet 1st Half 2018

OVERVIEW Bargara* is located in the Bundaberg Region of south-east Queensland, approximately 384km north of Brisbane s CBD. Over the last 7 years the population has grown by 8.6% and the number of houses has increased by 13.2%. This suggests that supply is exceeding demand, thus, housing authorities need to align planning strategies to match local trends and avoid further potential oversupply conditions. CHANGE FROM LAST YEAR HALF YEAR MARKET CONDITIONS The property market of Bargara* recorded a median house price of $373,000 and $334,000 for units in Q1 2018. This represents an annual price change of -3.6% and -4.2% respectively. Over the same period of time, house prices in the Bundaberg Regional Local Government Area (LGA) softened by -1.7% to $295,000 and unit prices softened by -0.8% to $250,000. This suggests a market softening is being experienced throughout the wider area, providing first home buyers with an opportunity for increased affordability. That said, compared to the wider LGA, Bargara* is a premium market for both houses and units, and is well suited for those looking for higher quality stock. Average vendor discounting in Bargara* tightened to -3.3% (houses) and -5.0% (units) over the past 12 months to Q1 2018, suggesting sellers are achieving closer to their first asking price. Despite the softening in median price growth, sellers are still benefiting from interest in the market. In particular, this is demonstrated by the average time to sell units, shrinking by -37.9% to 80 days. Over the same period (Q1 2017 Q1 2018), the housing market experienced dampened interest with average days to sell widening to 92 days in Q1 2018. Now is the time for buyers to invest and benefit from increasing affordability in Bargara*. Over the past 12 months to Q1 2018 median rent in Bargara* increased by 14.0% (houses) and softened slightly for units (-3.6%), currently at $368 per week (houses) and $335 per week (units). Investors are benefiting from rental yields of 4.8% (houses) and 5.5% (units), performing better than Brisbane Metro s yields of 3.8% (houses) and 5.0% (units). Combined with a low vacancy rate of 1.6%, which signals high property occupancy, investors can be confident of conducive investment returns. Now is the time to enter this affordable market. BUNDABERG REGIONAL GROWTH Number of Sales 500 400 300 200 100 0 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 $50,000 House Unit Vacant Land $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 Median House Price Median Unit Price Median Land Price $0 Median Price House Sales House Median Price House Rental Price Unit Sales Unit Median Price Unit Rental Price FUTURE DEVELOPMENTS** Bargara* is set to see approx. $22.6M of new projects commencing in the 1 st half of 2018. Commercial projects account for the main development value ($18.0M or 79.7%), followed by residential ($3.8M or 16.7%), and mixed-use projects ($800K or 3.5%). In total 2 new units and 71 residential lots will be added to the property stock in Bargara*. A significant residential project scheduled to commence construction in the 1 st half of 2018 is the Watsons Road Residential Subdivision Stages 3-6 project, valued at $2.9M. It is planned to begin in April and involves subdivision into 49 lots with associated road and drainage services. The focus on commercial projects should provide a number of opportunities for local job growth and sustainable economic activity, both of which are key to attracting more residents and absorbing incoming property supply. The Bargara Carinity Aged Care Facility ($18.0M) is set to begin in April 2018 and will deliver 96 beds. It will be a leading commercial facility for aged care. *Bargara market data and key indicators encapsulates property market conditions in the following suburb: Bargara. **Estimated values are based on construction value provided by the relevant data authority and does not reflect commercial and/or re-sale value. Quoted commencement construction date is approximate only. Source: APM Pricefinder, realestate.com.au. Copyright PRDnationwide 2018.

AVERAGE VENDOR DISCOUNT Change from Listing to Sale Price 0.0% -1.0% -2.0% -3.0% -4.0% -5.0% -6.0% -7.0% -8.0% House Unit -5.6% -4.8% -3.5% -6.5% -6.4% -3.5% -2.2% -2.9% -7.0% -2.0% -3.3% -5.0% Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 AVERAGE AVERAGE VENDOR VENDOR DISCOUNT DISCOUNT Average vendor discount reflects reflects the the average percentage difference between between first listedfirst price list price and final and final sold sold price. A price. lower A percentage lower percentage difference difference suggests (closer buyers to are 0) willing suggests to buyers purchase are close to willing the first to purchase asking price close to ofthe a first property. asking price of a property. MARKET COMPARISON GRAPH KEY FACTS UNIT The market comparison graph provides comparative trend for median price of house and units over the past 10 years. Suburbs profiled are chosen based on proximity to the main LGA analysed in the factsheet, which is Bundaberg Regional. This main area is highlighted through a dotted black line graph. HOUSE MARKET COMPARISON House Median Price $500,000 $450,000 $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Bundaberg Regional Gladstone Regional North Burnett Regional Fraser Coast Regional UNIT MARKET COMPARISON $500,000 Unit Median Price $450,000 $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Bundaberg Regional Gladstone Regional North Burnett Regional Fraser Coast Regional Source: APM Pricefinder. Copyright PRDnationwide 2018.

AVERAGE DAYS ON MARKET** 200 180 HOUSE KEY FACTS Q1 2018 Average Days on Market 160 140 120 100 80 60 40 20 0 101 148 80 129 83 142 84 174 95 123 92 80 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 House Unit Overall Market Trend Median Sale Price: $373,000 Annual Growth: -3.6%*** Average Days on Market: 92 % Change between First Listed Price and Sold Price: -3.3% UNIT KEY FACTS Q1 2018 KEY FACTS UNIT* Median Sale Price: $334,000 Median Sale Price : $785,000 Annual Growth: -4.2%*** Annual Area Growth: 11% Average Days on Market: 80 Average Days on Market: 36 % Change between First Listed % Change between First Listed Price and Price and Sold Price: -5.0% Sold Price: -0.1% SALES AND MEDIAN PRICE** 70 $450,000 60 $400,000 $350,000 Number of Sales 50 40 30 58 55 $300,000 $250,000 $200,000 Median Price 20 39 37 29 46 $150,000 $100,000 10 0 13 14 14 8 10 7 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 $50,000 $0 House Sales Unit Sales Median House Price Median Unit Price *Q1 2018 information represents data from both Normal and Agents Advice sales (i.e. sales transactions not derived from Government sources). **Bargara market data and key indicators encapsulates property market conditions in the following suburb: Bargara. ***Annual growth represents price growth for property transactions between Q1 2017 to Q1 2018 (inclusive). Source: APM Pricefinder, realestate.com.au, SQM Research. Copyright PRDnationwide 2018.

SALES PRICE POINT COMPARATIVE ANALYSIS HOUSE PRICE POINT 2016 HOUSE PRICE POINT 2017 3.2% 10.9% 1.9% 15.4% 14.1% 2.6% 8.3% 10.3% 17.3% 17.3% 23.7% Less than $249,999 $250,000 to $299,999 $300,000 to $349,999 $350,000 to $399,999 $400,000 to $449,999 $450,000 to $499,999 $500,000 to $549,999 $550,000 and above 12.2% 7.7% 10.3% 20.5% 24.4% UNIT PRICE POINT 2016 UNIT PRICE POINT 2017 24.2% 6.5% 9.7% 1.6% 11.3% 8.1% 11.3% 27.4% Less than $199,999 $200,000 to $249,999 $250,000 to $299,999 $300,000 to $349,999 $350,000 to $399,999 $400,000 to $449,999 $450,000 to $499,999 $500,000 and above 31.7% 11.1% 6.3% 11.1% 6.3% 7.9% 17.5% 7.9% KEY IMPLICATIONS - HOUSE The proportion of houses sold in Bargara* during 2017 were mostly within the $300K-$350K price segment (24.4%). This is similar to the 2016 price point pattern, indicating some stability in the market. In 2017 the 2 nd most affordable price bracket ($250K-$300K) market share fell from 15.4% to 8.3%. This signals those looking for affordable options need to act fast as stock is diminishing. Over the same period of time, the top two price segments ($500K-$550K and above $550K) have increased from 14.1% to 26.3% of the market. This has almost doubled, suggesting there is an increasing demand for higher quality property stock. This points to a niche market in which developers can cater towards. KEY IMPLICATIONS - UNIT The proportion of units sold in Bargara* during 2017 were mostly above $500K (31.7%). This represents a 7.5% increase from the 24.2% market share in 2016. In 2016 the dominant price segment was $300K-$350K (27.4%) and this has fallen by 9.9% to 17.5% in 2017. Over the same period of time, unit sales within the 2 nd highest price segment ($450K-$500K) almost doubled and the 3 rd highest price segment ($400K-$450K) increased four-fold. Thus, despite a softening in annual median price growth over the past 12 months to Q1 2018 there is an increasing appetite for higher quality stock. Affordable options below $200K have remained stable which is good news for those looking to enter the property market. *Disclaimer: Bargara market data and key indicators encapsulates property market conditions in the following suburb: Bargara. Source: APM Pricefinder. Copyright PRDnationwide 2018.

INVESTMENT ANALYSIS HOUSE UNIT 2 Bedroom 3 Bedroom 4+ Bedroom 1 Bedroom 2 Bedroom 3+ Bedroom HOUSE KEY FACTS Q1 2018 Median Rent Price: $368 per week Rental Yield: 4.8% Average Days on Market: 26 Bedroom Breakdown: 2 Bed: 0%, 3 Bed: 47%, 4+ Bed: 53% UNIT KEY FACTS Q1 2018 Median Rent Price: $335 per week Rental Yield: 5.5% Average Days on Market: 36 Bedroom Breakdown: 1 Bed: 4%, 2 Bed: 78%, 3+ Bed: 18% KEY COMMENTS Interest in Bargara* has been recorded at an average of 128 online visits per property. With a large number of current renters (29.1%), the rental demand for houses and units have increased over the past 12 months to Q1 2018. The number of houses rented almost doubled, yet rental prices increased by 14.0%. This suggests a real increase in rental value. Rental yields are strong at 4.8% (houses) and 5.5% (units), outperforming Brisbane's returns of 3.8% and 5.0%, respectively. This provides investors with assurance that Bargara* is a strong alternative for affordable investment options outside of Brisbane Metro. MEDIAN RENT AND AVERAGE DAYS ON MARKET* 70 450 Number of Rentals 60 50 40 30 20 10 61 35 33 31 20 19 15 17 52 27 64 30 400 350 300 250 200 150 100 50 Median Rent ($) / Average Days on Market 0 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 House Unit House Average Days Unit Average Days Median House Rent Median Unit Rent 0 *Disclaimer: Bargara market data and key indicators encapsulates property market conditions in the following suburb: Bargara. Source: APM Pricefinder, realestate.com.au, SQM Research. Copyright PRDnationwide 2018.

RENTAL PERFORMANCE 2017* $400 Median House Rent P/W Annual Change 0.0% $350 6.7% $300 2.0% $370 $250 $200 $320 $150 $100 $255 $50 $- Two Bedrooms Three Bedrooms Four+ Bedrooms VACANCY RATES 2017 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% KEY COMMENTS Rental returns in Bargara are particularly strong for houses (4.8%), which is well above that of Brisbane Metro s 3.8% and slightly above both Fraser and Bundaberg LGA s at 4.4%. 3 bedroom houses provide the highest annual rental growth at 6.7% ($320). Bargara* vacancy rate is extremely low (1.6%) and trending downwards, suggesting a healthy rental demand. This is well below that of Brisbane Metro s vacancy rate of 3.8%, and travelling in the opposite direction, thus confirming Bargara* as having a conducive environment for investment opportunities. RENTAL YIELD 2017 4.5% 4.0% 3.5% 3.0% Suburb/ Postcode/ LGA House Rental Yield Unit Rental Yield 2.5% 2.0% 1.5% 1.0% Bargara 4.8% 5.5% Bundaberg Regional LGA 4.4% 5.6% 0.5% 0.0% Fraser Coast Regional LGA 4.4% 5.3% Dec-14 Dec-17 Sep-17 Jun-17 Mar-17 Dec-16 Sep-16 Jun-16 Mar-16 Dec-15 Sep-15 Jun-15 Mar-15 Bargara Bundaberg Regional Brisbane Metro Brisbane Metro 3.8% 5.0% KEY HOUSING DEMOGRAPHICS Bargara Bundaberg Regional LGA Queensland Median weekly household income $1,088 $973 $1,402 Median monthly mortgage repayments $1,602 $1,322 $1,733 Unemployed 8.9% 10.5% 7.6% Professionals 26.1% 15.0% 19.8% Owned outright 39.8% 37.6% 28.5% Owned with mortgage 24.0% 28.8% 33.7% Rented 29.1% 29.3 34.2% *Rental performance graph represents aggregate house median rent prices in the Bargara. Annual change is a comparison between 2016 and 2017 median rent figures. Source: APM Pricefinder, SQM Research, ABS Census 2016. Copyright PRDnationwide 2018.

PROJECT DEVELOPMENT MAP 1 st HALF 2018* 3.5% 16.7% 79.7% Commercial Mixed use Residential Location Project** Type Estimated Value*** Commence Date**** 1 Bargara Carinity Aged Care Facility Commercial $18,000,000 16/04/2018 2 Whalley Street Mixed Use Development (2 units) Mixed use $800,000 07/05/2018 3 Watsons Road Residential Subdivision Stages 3 6 (49 lots) Residential $2,900,000 04/06/2018 4 Bargara Views Estate Subdivision Stage 6 (22 lots) Residential $880,000 05/04/2018 *Disclaimer: Project development map showcases a sample of upcoming projects only, due to accuracy of addresses provided by the data provider for geocoding purposes. **Projects refers to the top developments within the suburb of Bargara. ***Estimated value is the value of construction costs provided by relevant data authority, it does not reflect the project s sale/commercial value. ****Commencement date quoted for each project is an approximate only, as provided by the relevant data authority, PRDnationwide does not hold any liability to the exact date. Source: Cordell Database, ESRI ArcGIS, Bundaberg Regional Council. Copyright PRDnationwide 2018.

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